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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| W Resources Plc | LSE:WRES | London | Ordinary Share | GB00BKQN5R41 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 2.65 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMWRES
RNS Number : 2305A
W Resources PLC
10 September 2018
10 September 2018
W Resources Plc
("W" or the "Company")
Half Year Results for the Six Months Ended 30 June 2018
W Resources Plc (AIM: WRES), the tungsten, copper and gold exploration and development company with assets in Spain and Portugal, announces its half year results for the six months to 30 June 2018.
HIGHLIGHTS
La Parrilla, Spain
-- Completed the US$35m debt funding from BlackRock Financial Management Inc. in February 2018.
-- Awarded a grant of EUR5.3m for the La Parrilla Mine project by the Junta de Extremadura Government in Spain to W's 100% owned subsidiary, Iberian Resources Spain SL.
-- Commenced earthworks and construction at the La Parrilla mine with completion on track for Q1 2019.
-- Secured offtake agreements with Wolfram Bergbau und Hütten and directly with a leading supplier to the USA tungsten markets for approximately 80% of planned production tonnage from the T2 phase.
-- Awarded the Concentrator contract to allmineral Aufbereitungstechnik GmbH & Co. KG of Germany.
-- Strengthened the W key executive team in September with the appointment of Juan Garcia Valledor as La Parrilla Operations Manager and Tomás Bragado as La Parrilla Plant Manager.
Portuguese Projects
-- Purchased 20.3 hectares of land covering the main area of the Régua mine, for a total of EUR300,000.
-- Extended the Régua Trial Mine Licence for a further year to 19 June 2020.
-- Completed a 1,515 metre Reverse Circulation ("RC") drilling campaign at the Tarouca tungsten and tin exploration licence which identified very high tungsten grade intersections.
-- Completed a 2,000m RC drilling campaign at the São Martinho gold project during July which delivered very encouraging grades.
Chairman of W, Michael Masterman commented: "La Parrilla is funded and under full project development. The project is on schedule and on budget and tungsten and tin production and sales are set to commence at large scale production levels and at low cost in 2019. Achievement of this objective will transform W Resources.
"Régua in Portugal is approved and advanced and will follow closely behind the development of La Parrilla. Exploration success at Tarouca will feed into and further enhance Régua hub development economics.
"Steady advanced exploration progress at our São Martinho gold and Monforte-Tinoca copper projects will further enhance investor returns.
"The team with the strong support of the Board is executing development well and this is a credit to the calibre of the management team."
A full copy of the W Resources Interim Results for the six months ended 30 June 2018 is available on the Company's website at www.wresources.co.uk and an extract of the Interim Results for the six months ended 30 June 2018 is presented below.
Enquiries:
W Resources Plc Grant Thornton UK LLP Michael Masterman Colin Aaronson / Jen Clarke / T: +44 (0) 20 7193 7463 Seamus Fricker www.wresources.co.uk T: +44 (0) 20 7383 5100 Turner Pope Investments (TPI) Ltd Gable Communications Andy Thacker Justine James T: +44 (0) 203 621 4120 T: +44 (0) 20 7193 7463 www.turnerpope.com M: +44 (0) 7525 324431
About W
In 2012, W Resources Plc (AIM:WRES) made the successful transition into a tungsten production exploration and development company with projects in Spain and Portugal, following two acquisitions. Projects now include La Parrilla, a tungsten project in Spain and Régua and Tarouca Tungsten projects and the Portalegre copper-gold project in Portugal.
The Company's deposits and tungsten mine developments offer a low cost, high margin resource development opportunity. Tungsten and Tin prices have increased significantly over the last 12 months and Tungsten is in the EUs top 5 critical metals list.
The Board is focused to explore further opportunities in the region with a view to building a mid-tier minor metal producer.
The Company was incorporated in England and Wales in 2004.
APPIX I - JORC Compliant Mineral Reserves and Resource Estimates
La Parrilla Proven and Probable Mineral Reserves - JORC 2012
Hot Features
Premium
Tonnes Grade Metal Content Grade Metal Content
'000 WO(3) (ppm) WO(3) (t) Sn (ppm) Sn (t)
---------- ------- ------------ -------------- --------- --------------
Proven 1,177 995 1,171 251 295
Probable 28,577 928 26,511 111 3,156
----------
Total 29,754 931 27,683 116 3,451
========== ======= ============ ============== ========= ==============
Note: The La Parrilla mine reserves are set out in the following table based on the optimal LOM Pit. Estimate for La Parrilla Deposit using a 330 ppm WO(3) Cut-Off Grade and 5% dilution. All tonnes quoted are dry tonnes. Differences in the addition of tonnes to the total displayed is due to rounding.
The La Parrilla JORC-compliant mineral reserves update was fully disclosed, with JORC Table 1 in a Company news release on 14 June 2017. Mr Adén Muñoz of AYMA Mining Solutions SL, a Spanish Mining Engineering company based in Seville was the Competent Person responsible for the La Parrilla Proven and Probable Mineral Reserves. The mineral reserves are based on indicated and measured resources prepared by Golder Associated in March 2017 (RNS, 11 May 2017).
La Parrilla JORC Compliant Mineral Resource Estimate
Category Tonnes WO(3) % Sn (ppm) Cut-off ----------- -------- -------- --------- ------------ Indicated 36 mt 0.096 115 0.04% WO(3) Inferred 15 mt 0.095 92 0.04% WO(3) ----------- -------- -------- --------- ------------ Total 51 mt 0.096 108 0.04% WO(3) =========== ======== ======== ========= ============
The La Parrilla JORC-compliant mineral resource update was fully disclosed, with JORC Table 1 in a Company news release on 5 February 2016. Mr Andrew Weeks (Golder Associates Pty Ltd) was the Competent Person responsible for the Mineral Resource Estimate for the La Parrilla deposit.
Régua JORC Compliant Mineral Resource Estimate
Category Tonnes WO(3) % Cut-off ---------- -------- -------- ------------ Indicated 3.76 mt 0.304 0.1% WO(3) Inferred 1.70 mt 0.227 0.1% WO(3) ---------- -------- -------- ------------ Total 5.46 mt 0.280 0.1% WO(3) ========== ======== ======== ============
The Régua JORC-compliant mineral resource update was fully disclosed, with JORC Table 1 in a Company news release on 27 October 2015. Mr Sia Khosrowshahi (Golder Associates Pty Ltd) was the Competent Person responsible for the Mineral Resource Estimate for the Régua deposit.
São Martinho Maiden JORC Compliant Mineral Resource Estimate
Category Tonnes Au (g/t) Au Content Cut-off
(Oz)
----------- --------- --------- ----------- ------------
Indicated 0.48 mt 1.03 17,363 0.5 g/t Au
Inferred 2.56 mt 1.05 94,624 0.5 g/t Au
----------- --------- --------- ----------- ------------
Total 3.04 mt 1.04 111,987 0.5 g/t Au
=========== ========= ========= =========== ============
The São Martinho maiden JORC-compliant mineral resource update was fully disclosed, with JORC Table 1 in a Company news release on 8 June 2016. Mr Jorge Peres (Golder Associates Pty Ltd) was the Competent Person responsible for the Mineral Resource Estimate for the São Martinho deposit.
CHAIRMANS STATEMENT
Dear Shareholders,
2018 has proven to be a transformational year for W Resources, with the receipt of a US$35m term loan facility from BlackRock Financial Management Inc. ("BlackRock") and exceptionally strong local Government support from the Junta de Extremadura in Spain, the Company is well positioned to deliver on its growth plans as it builds towards transitioning to a mid-tier mining Company.
In the first half of 2018, W Resources delivered on its objective to fund its flagship La Parrilla tungsten and tin mine in South-western Spain and is rapidly moving to complete construction and commissioning of the mine and processing plant. La Parrilla was fully funded in February 2018 through a US$35 million term loan facility from BlackRock, and development of the La Parrilla tungsten and tin mine is on schedule for completion in the first quarter of 2019.
In parallel, the team is continuing to advance W's core Portuguese tungsten, copper and gold assets.
TUNGSTEN & TIN
La Parrilla - Spain
La Parrilla is a large scale, low cost, long life tungsten and tin project, located approximately 310km southwest of Madrid. It has Australasian Joint Ore Reserves Committee ("JORC") compliant resources totalling 49 million tonnes ("mt") at a grade of 998 parts per million ("ppm") of tungsten trioxide ("WO(3) ") and JORC compliant reserves of 29.8mt at a diluted grade of 931ppm WO(3) .
Development work is underway with construction progressing well during H1 2018 towards project completion in Q1 2019. The timing coincides well with the sharp rise in the European Tungsten ammonium paratungstate ("APT") price over the past year and the project is on target to mine 2 million tonnes per annum ("mtpa") of Run of Mine ("ROM") and produce approximately 2,700 tonnes ("t") of tungsten concentrate and 500t of tin ("Sn") concentrate per annum ("T2").
Project Funding
In February, W secured a US$35 million term loan facility from BlackRock to fund the La Parrilla mine development.
The funds were drawn in two tranches, with the second drawdown completing the US$35 million facility in May. As part of the completion of the funding W issued a total of 307,605,430 warrants on a pro-rata basis to the BlackRock funds that participated in the funding, representing 5% of W's fully diluted equity.
In March, the Company was delighted to receive confirmation from the Junta de Extremadura Government in Spain who awarded a grant of EUR5,322,970 to W's 100% owned subsidiary, Iberian Resources Spain SL. The success of the application is testament to the skills and hard work from the team, who have built great on the ground relationships and appreciate the Government support.
Offtake Agreements
Two major long term offtake agreements were signed in February. The first with Wolfram Bergbau und Hütten AG, ("WBH"), the largest tungsten processing company in Europe and the second is directly with a leading supplier to the USA tungsten markets.
W Resources will supply both with approximately 66% tungsten concentrate on competitive pricing terms. The offtake agreements cover the initial T2 development of the La Parrilla Mine, and will account for approximately 80% of the planned production tonnage from this phase. There is significant demand for the balance of production which W plans to secure offtake following initial production start-up in early 2019.
Contracts
In January, the third core design and construction contract for the Concentrator was awarded to allmineral Aufbereitungstechnik GmbH & Co. KG of Germany ("allmineral") at a contract price of cEUR8 million. allmineral also have the contract for the Jig & Mill which provides important integration benefits for the project delivery.
Development
With funding in place, the earthworks commenced in April with plant civil works nearing completion.
Concrete and civil works are also now complete for the crusher and Metso Minerals Portugal, Lda ("Metso") and Disteca (steelwork contractor) have commenced structural steel delivery at the La Parrilla site. Metso crusher equipment was fabricated in their plant in Mâcon, France and will be progressively delivered to site as steelwork is erected on a just in time basis.
The earthworks and foundations for the Jig & Mill have now been completed with construction of the Jig & Mill on schedule for Q4 2018.
We expect to complete construction of the crusher and the jig in the December quarter and the concentrator in the first quarter of 2019.
PORTUGUESE PROJECTS
Régua Tungsten Project
Significant progress continues at Régua, a high grade, development-ready tungsten project with low capital cost. The project, which has a Trial Mine Licence to 19 June 2020, has a current JORC compliant mineral resource of 5.46mt at a grade of 0.28% WO(3) , with an indicated resource of 3.76mt at a grade of 0.304% WO(3) . In July, the Portuguese Secretary of State for Energy under the Ministry for the Economy granted a further one-year extension to the Régua Trial Mine Licence.
Régua's high ROM grade (at greater than 0.3% WO(3) ) and proximity to a crushing facility are likely to prove beneficial to the project economics.
The Régua deposit remains open at depth and on all sides, with significant potential to boost the resource growth to the northeast including a 10m thick tungsten intersection.
The Company has now secured all approvals, and in February 2018 W cleared the last hurdle for development when the purchase of 20.3 hectares of land covering the main area of the Régua mine, for a consideration of EUR300,000, was concluded. This land covers the outcropping resource of the deposit along with the trial mine facilities including the portals and the underground projected stopes.
Preparatory mine grade control drilling commenced in Q2 2018 with nearly 2,000m of RC drilling completed during July. Diamond core drilling is underway and preparatory mine works will commence following analysis of results.
Tarouca Tungsten Project
In 2015, trench sampling at the Tarouca project showed high grade tungsten results with 15 out of the 126 samples exceeding 0.5% WO(3) , including 0.8m at 11.4% WO(3) (TTR063). Together with the 15 holes drilled in 2014, this confirms an outstanding exploration target in the north-eastern area of the licence.
The Company is working towards consolidating the prior exploration programmes completed to date by carrying out a reverse circulation ("RC") drilling campaign. In April 2018, the team carried out a month-long RC drilling programme including 29 holes with 1,515 metres of total drilling, completed in depths of 5 to 70 metres.
Initial results have reported some very high-grade tungsten zones have been intersected which provides greater reassurance that this project can provide additional high-grade feed to the Régua mine development, just 20km to the north. The results provide greater clarity on the geological structure and the potential to follow grade extensions. The full assay results are expected to be received in Q3 2018, following which the development team will model the mineralised lenses in order to advance a geological resource at Tarouca.
The outcome of the drilling campaign at Tarouca will assist to further delineate the resource with a view to increasing our overall tungsten resource and production base and apply for a trial mine licence later in 2018.
CAA Portalegre - Gold
São Martinho currently has a JORC gold resource of over 110,000oz. Results from the drilling campaign in 2017 provided very promising results with a thick intersection of over 55m of gold at 2.34g/t. These results provide a solid base to drive extension drilling with the potential for a materially larger resource.
In May 2018, the Portuguese technical team commenced a 15 hole, 2,000m RC drilling programme with a view to materially increase the JORC resource. Initial results were received in July 2018 which highlight continued strong gold intersections, enabling the team to further delineate the deposit. The evaluation work on this programme remains ongoing.
The overall results of the RC drilling campaign will form part of the update for the upgrade to the JORC compliant mineral resource estimate which is expected to be completed in H2 2018.
Monforte-Tinoca - Copper
The Monforte-Tinoca Copper exploration licence, which contains the Tinoca and Azeiteiros former copper mines, was granted to W in July 2016 and this project will be advanced during 2018. Geophysics surveys are currently underway using both Induced Polarisation / Electric Resistivity and Transient Electromagnetics methods across the target Copper zones.
The geophysics surveys are expected to pin point the copper anomaly and extensions of the former high-grade copper mines. RC drilling (1,500m in total) was completed mid-year.
Finance
In April 2018 the Company completed a placing to raise GBP1.5 million through the placement of 300,000,000 ordinary shares of 0.1p per share ("Ordinary Shares") at 0.5p per Ordinary Share.
Executive Appointments
In September, the Company announced the executive appointments of Juan Garcia Valledor as La Parrilla Operations Manager and Tomás Bragado as La Parrilla Plant Manager. Both executives have extensive operational experience in the Spanish mining and metals industry and join W's executive team in the lead up to the start of mining and completion of construction of the crusher and jig & mill prior to the end of the year and the concentrator plant in the new year.
Outlook
La Parrilla is funded and under full project development. The project is on schedule and on budget and tungsten and tin production and sales are set to commence at large scale production levels and at low cost in 2019. Achievement of this objective will transform W Resources.
Régua in Portugal is approved and advanced and will follow closely behind the development of La Parrilla. Exploration success at Tarouca will feed into and further enhance Régua hub development economics.
Steady advanced exploration progress at our São Martinho gold and Tinoca copper projects will further enhance investor returns.
The team with the strong support of the Board is executing development well and this is a credit to the calibre of the management team.
Mr M Masterman
Chairman
W Resources Plc
10 September 2018
W RESOURCES PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2018
Unaudited
Unaudited Six Months Year to
Six Months to 30 June 31 December
to 30 June 2017 2017
2018 GBP(000's) GBP(000's) GBP(000's)
Continuing Operations
Revenue - - -
Cost of Sales - - -
------------------ ------------------------ ------------------------
Gross Loss - - -
Administrative Expenses (639) (371) (711)
Exceptional Items - - -
------------------ ------------------------ ------------------------
Operating Loss (639) (371) (711)
Finance Costs (279) (10) (21)
Exchange Gain/(Loss) (1,084) - -
Finance Income - - -
------------------ ------------------------ ------------------------
Loss before Income Tax (2,002) (381) (732)
Income Tax 68 - (126)
------------------ ------------------------ ------------------------
Loss for the Period (1,934) (381) (858)
------------------ ------------------------ ------------------------
Other Comprehensive Income
Share Based Payment - - -
Translation Reserve Movement 105 333 433
Share Options issued/related - - -
------------------ ------------------------ ------------------------
Total Comprehensive (Loss)/Profit
for the period (1,829) (48) (425)
------------------ ------------------------ ------------------------
Basic and Diluted Loss per
Share (0.03p) (0.008p) (0.02p)
W RESOURCES PLC
GROUP FINANCIAL POSITION
30 JUNE 2018
Unaudited Unaudited
30 June 30 June 31 December
2018 2017 2017
GBP(000's) GBP(000's) GBP(000's)
ASSETS
NON-CURRENT ASSETS
Intangible Fixed Assets 17,761 12,810 13,618
Tangible Fixed Assets 7,345 2,171 2,204
25,106 14,981 15,822
CURRENT ASSETS
Inventories 47 - 47
Trade and Other Receivables 4,037 851 1,055
Cash and Cash Equivalents 15,058 813 451
19,142 1,664 1,553
TOTAL ASSETS 44,248 16,645 17,375
EQUITY
SHAREHOLDERS EQUITY
Called up share capital 5,478 4,843 5,157
Share premium account 25,340 23,336 24,146
Retained earnings (16,983) (14,572) (15,049)
Merger Reserve 909 909 909
Translation Reserve 885 680 780
Share based Payment Reserve 60 60 60
TOTAL SHAREHOLDERS EQUITY 15,689 15,256 16,003
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 1,218 1,191 902
Financial Liabilities - borrowing
interest bearing loans - 198 344
Tax Payable 57 - 126
__________ __________ __________
1,275 1,389 1,372
__________ __________ __________
NON-CURRENT LIABILITIES
Loan Capital 27,284 - -
___________ __________ __________
TOTAL LIABILITIES 28,559 1,389 1,372
___________ __________ __________
TOTAL EQUITY AND LIABILITIES 44,248 16,645 17,375
___________ __________ __________
W RESOURCES PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2018
Share Based
Called Up Profit and Payment
Share Loss Share Merger Translation Reserve
Capital Account Premium Reserve Reserves GBP(000's) Total
GBP(000's) GBP(000's) GBP(000's) GBP(000's) GBP(000's) Equity
GBP(000's)
Balance at 1
January 2018 5,157 (15,049) 24,146 909 780 60 16,003
Issue of Share
Capital 321 1,194 1,515
Total Loss for
the Period (1,934) (1,934)
Unrealised
Foreign
Exchange
Gain _______ _______ _______ _______ 105 _______ 105
Total
Comprehensive
Income ______ (1,934) _______ _______ 105 _______ (1,829)
Balance at 30
June 2018
(unaudited) 5,478 (16,983) 25,340 909 885 60 15,689
Year to 31
December 2017
Balance at 1
January 2017 4,360 (14,191) 22,381 909 347 60 13,866
Issue of Share
Capital 797 1,765 2,562
Total
Comprehensive
Income (858) (858)
Unrealised
Foreign
Exchange
Loss _______ _______ _______ ______ 433 _______ 433
Balance at 31
December
2017 5,157 (15,049) 24,146 909 780 60 16,003
6 Months to 30
June 2017
Balance at 1
January 2017 4,360 (14,191) 22,381 909 347 60 13,866
Issue of Share
Capital 483 955 1,438
Total Loss for
the Period (381) (381)
Share Based -
Payment
Unrealised
Foreign
Exchange
Gain _______ _______ _______ _______ 333 _______ 333
Total
Comprehensive
Income _______ (381) _______ _______ 333 _______ (48)
Balance at 30
June 2017
(unaudited) 4,843 (14,572) 23,336 909 680 60 15,256
W RESOURCES PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2018
Unaudited Unaudited
Six Months Six Months Year to
to 30 June to 30 June 31 December
2018 2017 2017
GBP(000's) GBP(000's) GBP(000's)
Cash Flows from Operating
Activities
Cash Absorbed by Operations (4,551) 77 (709)
Interest Paid - - -
Finance Costs paid (279) (10) (21)
----------------------- ----------------- ------------------
(4,830) 67 (730)
----------------------- ----------------- ------------------
Cash Flows from Investing
Activities
Purchase of intangible fixed
assets (3,790) (864) (1,577)
Purchase of tangible fixed
assets (5,228) (220) (311)
(9,018) (1,084) (1,888)
Cash Flows from Financing
Activities
New Loans in period 27,284 - 168
Loan Repayments in period (344) 35 (35)
Share Issue 321 483 797
Share Premium 1,269 1,018 1,895
Share Issue costs (75) (63) (113)
Net Cash for Financing Activities 28,455 1,473 2,712
Increase/(Decrease) in Cash
and Cash Equivalents 14,607 456 94
Cash and Cash Equivalent at
Beginning of Period 451 357 357
----------------------- ----------------- ------------------
Cash and Cash Equivalent at
end of Period 15,058 813 451
----------------------- ----------------- ------------------
Reconciliation of Cash Flows
from Operations
Loss before Tax (2,002) (381) (732)
Depreciation 106 105 212
Exchange Difference on Translation (268) (3) (7)
Finance Costs 279 10 21
----------------------- ----------------- ------------------
(1,885) (269) (506)
----------------------- ----------------- ------------------
(Increase) / Decrease in Trade
and Other Receivables (2,982) 41 (163)
Increase/(Decrease) in Trade
and Other Payables 316 305 7
(Increase)/Decrease in Inventories - - (47)
Cash Absorbed by Operations (4,551) 77 (709)
----------------------- ----------------- ------------------
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR KMGGLRLGGRZM
(END) Dow Jones Newswires
September 10, 2018 02:00 ET (06:00 GMT)
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